How to find premium users while driving down CPA

9 MIN READ
November 14, 2022

Overview

In a quest to find greater scale and achieve a more diversified portfolio — including premium partners — a large sports betting app turned to FeedMob for help. This client understood the challenges of working with premium partners, especially around CPA. Premium partners typically charge hundreds of dollars more per acquisition than other partners. Consequently, the client needed help testing new partners to find the most cost-effective. Additionally, in the wake of SKAN, the client needed assistance navigating the difficulties associated with attribution for performance marketers associated with some supply categories.

Approach

In January 2022, FeedMob began testing the current media mix that the client was running, which unfortunately yielded high fraud rates. At times, we found almost 24% of campaign spend was due to fraud. In addition, conversion rates were low due to the poor quality of traffic. Moving to higher-quality traffic sources, such as DSPs, helped improve both problems.

By March, FeedMob had tested and vetted five premium supply partners, driving down the client’s CPA rates from programmatic partners. Each DSP has its own algorithm, so we share the campaign’s KPIs with them. We typically see a high CPA initially, but once we have a critical mass of data to feed the algorithm, the performance improves, and CPAs drop.

Conclusion

In September, after optimizing several campaigns across a variety of the client’s apps, FeedMob could show that we beat the original target goal by reducing CPA from $139 to $77. Optimization yielded a 44.6% decrease in CPA costs year over year. In addition, several tests yielded a premium supply mix, and conversion rates by action increased from .11% to an average of .18% year over year. In addition, fraud rates decreased to .14% — a significant decrease from the client’s previous 24%. Ultimately, through partner testing and rate optimization, FeedMob was able to meet the client’s desired CAC and deliver premium users to an already well-known sports brand.

$62

Reduced CPA

44.6%

Lower CPA YoY

+.07%

Average conversion

rates by action YoY

23.9%

Decrease in Fraud

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